IMC Final

| |

|

Know the tools of the marketing
communications mix.(Promotion Mix)
Learn the steps in developing effective
marketing communications.
Understand methods for setting promotional
budgets and the factors that affect the design of
the promotion mix.
Advertising Decisions.
Sales promotion tool.
Public Relations Tools.
Personal Selling
!

Akai TVs
Airtel and Hutch (Now Vodafone)
Fevicol
Bingo
Haldiram¶s
What types of promotion mix have
these companies used to promote
their products?
!

Marketing Communications Mix ( Promotion Mix)
å A company¶s total marketing
communication program is called as ³
Promotion Mix´
Mix´
å Promotion Mix Consists of specific mix of
advertising, personal selling, sales
promotion, and public relations tools that
the company uses to pursue its
advertising and marketing objectives.
!
u

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Integrated Marketing Communications
å The concept under which a company
carefully integrates and coordinates its
many communications channels to deliver
a clear, consistent, and compelling
message about the organization and its
products.
å IMC implementation often requires the
hiring of a MarCom manager.
!

|
Definition- Promotion
Promotion Mix
Integrated Marketing
Communication (IMC)
Change
å Technology
å Build Relationships
å Interactivity
ß! "

!
|
àType of Product
àStage in the Product Life Cycle
àTarget Market Characteristics
àActions of Competitors
àAvailable Funds
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Advertising Issues
Corporate Management
Communication Marketing
Crisis Multimedia
Communication Public Relations
E-Commerce Sales Promotion
Event Marketing Strategic
Internal Planning
Communication Web Design

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] Build Brand Equity
] Provide Information
] Manage Demand &
Build Sales
] Differentiate Products
] Influence Perceptions,
Attitudes, & Buyer
Behavior
!

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m
$#

m
n billions
m
m
m m
m
m
m
m
m

ã V Projected
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Persuasive Communication
Infomercials
Internet
Global Advertising
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âWill reach $22 billion in the U.S.
â The rest of world will spend $10.8
billion.
â$27 billion (10% of all U.S. ad
spending) will be siphoned from
traditional media
âHardest hit: newspapers and
direct mail ã R

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Steps Publicity
Listen Free
More Effective
Change/Develop Than Ad
Believable
Inform No Control
No Repetition

|
Internal & External
Sampling
Word-Of-Mouth
Viral Marketing/Swag
Technology
Testimonials
!#
u #
] Coupons can be ] Get professional
used as a ³Thank help to get
you for buying´ or a
³Stop and try us.´
maximum
exposure.
] The value must be
enough to attract ] Color-code your
customers. coupons for
] Use coupon different groups
promotions that use them.
sparingly.
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Celebrity Product(s)
!##$

Athlete Endorsements
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Concrete, Measurable Communication Tasks

Well
Well--Defined Target Audience
Have an Existing Benchmark Measure
Specify Degree of Change Sought
Specific Time Period
!

|

Communications efforts should be
viewed from the perspective of
managing customer relationships over
time.
The communication process begins
with an audit of all potential contacts.
Effective communication requires
knowledge of how communication
works.
!
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Èoise Èoise Èoise Èoise Èoise Èoise
Èoise Èoise Èoise Èoise
Sender Èoise Èoise
Èoise Encoding Èoise Èoise
Èoise Èoise Èoise
Feedback

Message
Media Èoise Èoise
Response Decoding Èoise Èoise
Receiver

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Step 1. dentifying the Target Audience
Step 2. Determining the Communication Objectives
Step 3. Designing a Message

Step 4. Choosing Media
Step 5. Selecting the Message Source
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Step 1. dentifying the Target Audience
Step 2. Determining the Communication Objectives

Buyer Readiness Stages
Awareness
Knowledge
Liking
Preference
Conviction
Purchase

# $

ã Identifying the Target Audience
å Affects decisions related to what, how,
when, and where message will be said,
as well as who will say it
ã Determining Communication
Objectives
å Six buyer readiness stages
! &
ã Designing a Message
å ADA framework guides message design
å Message content contains appeals or themes
designed to produce desired results these are :
(

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Ë Love, pride, joy, humor, fear, guilt, shame E.g. Crack
creame..
creame
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Step 3. Designing a Message
Message Content
Rational Appeals
Emotional Appeals Message Structure
Moral Appeals Draw Conclusions
Argument Type Message Format
Argument Order Headline, Copy, Color,
Words, & Sounds,
Body Language
Attention nterest Desire Action

# $

ã Designing a Message
å Message Structure: Key decisions are required
with respect to three message structure issues:
s

å Message Format: Design, layout, copy, color,

shape, movement, words, sounds, voice, body
language, dress, etc.
! !

# $

ã Choosing
Choosing Media
å Personal communication channels
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å Nonpersonal communication channels
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ã Selecting
Selecting the Message Source
å Highly credible sources are more
persuasive
å A poor spokesperson can tarnish a brand
ã Collecting Feedback
å Recognition, recall, and behavioral
measures are assessed
å May suggest changes in
product/promotion
!
Ö

Ö

!

!

!

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Two major decisions

Establishing the size of the budget
Allocating the budget
!# Ö

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The Affordable Method
å What we have to spare. What's left to spend.
Arbitrary Allocation Method

å Èo system. Seemed like a good idea at the time.
Percentage of Sales Method

å Set percentage of sales or amount per unit.
Competitive Parity Method

å Match competitor or industry average spending.
Return on nvestment Method

å Spending is treated as a capital investment.
ã V
#
Affordable Percentage-
Method of-Sales
Method
Competitive- Objective-
Parity and-Task
Method Method
Setting the Total Promotional Budget
å Objective
Objective--and-
and-Task Method
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Setting the Overall Promotion Mix
å Determined by the

and the selected

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Promotion
Reaches large,
Tools geographically dispersed
audiences, often with
high frequency
|
ã
Low cost per exposure,
though overall costs are
ã|
high
|!(
Consumers perceive
advertised goods as more
) *
legitimate
Dramatizes
company/brand
Builds brand image; may
stimulate short-
short-term sales
mpersonal; one-
one-way ! !
communication

| Ö

Promotion Most effective tool for
building buyers¶

Tools
_
preferences,
convictions, and

actions
Personal interaction
ã allows for feedback
ã|
and adjustments
Relationship
Relationship--oriented
|!(

Buyers are more
) *
attentive
Sales force represents
a long-
long-term
commitment !

| Ö

May be targeted at the
Promotion trade or ultimate
consumer

Tools
_
Makes use of a variety of
formats: premiums,
|
ã
coupons, contests, etc.
Attracts attention, offers
ã
strong purchase
incentives, dramatizes
offers, boosts sagging
|!(
sales
Stimulates quick
) *
response
Short
Short--lived
Èot effective at building
long--term brand
long !
preferences

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Promotion Highly credible
Tools Many forms: news
_
stories, news features,
events and
|
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sponsorships, etc.
ã|
Reaches many
prospects missed via
' other forms of
(
promotion
) *
Dramatizes company
or benefits
Often the most
underused element in
the promotional mix
!

| Ö

Many forms:
Promotion Telephone marketing,
Tools direct mail, online
_
marketing, etc.
|
ã
Four distinctive
ã|
characteristics:
å Èonpublic
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å mmediate
å Customized
@
( å nteractive
huu*%+ Well-
Well-suited to highly
targeted marketing
efforts
!

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Promotion Mix Strategies
å
trade promotions and
personal selling efforts push the product
through the distribution channels.
å
producers use advertising
and consumer sales promotions to generate
strong consumer demand for products.
! +
% Integrating the Promotion Mix
å Analyze trends (internal and external)
å Audit communications spending
å Identify all points of contact
å Team up in communications planning
å Make all communication elements
compatible
å Create performance measures
å Appoint an IMC manager
! &
%
#

Advertising and Sales Promotion
å Avoid false and deceptive advertising
å Trade promotions can not favor certain

customers over others
å Use advertising to promote socially

responsible programs and actions
! '
Personal Selling
å Salespeople must follow the rules of ³fair
competition´
å Three day cooling-
cooling-off rule protects ultimate
consumers from high pressure tactics
å Business
Business--to
to--business selling
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Any form of Nonpersonal presentation and
promotion of ideas, goods, or services by an
identified sponsor.
U.S. advertisers spend in excess of $175
billion each year.
Advertising is used by:
å Business firms,
å Nonprofit organizations,
å Professionals,
å Social Agencies.
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Objectives Setting
Budget Decisions
Message Decisions Media Decisions
Campaign Evaluation

Advertising Objectives
Specific Communication V
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Accomplished with a Specific V
Audience
During a Specific Period of V
nformative Advertising Persuasive Advertising

Build Primary Demand Build Selective Demand
Comparison
Reminder Advertising
Advertising Keeps Consumers Thinking
Compares One Brand to About a Product.
Another
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An advertising goal is a
communication task that is specific
and measurable.
The communication task has four
stages:
å Awareness
å Comprehension
å Conviction
å Action

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Advertising Budget Methods
Affordable, Percentage of Sales, Competitive-Parity
and Objective-and-Task
Product Stage in the Product
Differentiation Life Cycle
Factors in
Advertising Setting the Market
Frequency Advertising Share
Budget
Competition
and Clutter
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Plan a Message Strategy

General Message to Be Communicated to Customers
Develop a Message
Focus on
Customer Benefits Creative Concept
³Big dea´
Visualization or Phrase Advertising Appeals
Combination of Both Meaningful
Believable
Distinctive

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Turning the ³Big dea´ nto an Actual Ad to Capture
the Target Market¶s Attention and nterest.
Testimonial
Slice of Life
Evidence
Scientific
Evidence
Typical Lifestyle
Message
Technical Execution Fantasy
Expertise
Styles
Personality Mood or
Symbol mage
Musical

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Step 1. Decide on Reach, Frequency,

and mpact
Step 2. Choosing Among Major Media Types
Media Habits of Target Consumers
Èature of the Product
Type of Message
Cost
Step 3. Selecting Specific Media Vehicles
Specific Media Within a Given Type, i.e. Magazines.
Must Balance Media Cost Against Media Factors:
Audience Quality & Attention, Editorial Quality
Step 4. Deciding on Media Timing

Scheduling of Advertising Over the Course of a Year
Pattern of Ads: Continuity or Pulsing

Cost per The cost of reaching one
Contact member of the target market.
The number of target consumers

Reach exposed to a commercial at least
once during a time period.
The number of times an individual is
Frequency exposed to a message during a time
period.
Audience The ability of an advertising medium

Selectivity to reach a precisely defined market.
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Advertising Program Evaluation
Communication Effects Sales Effects

s the Ad Communicating Well? s the Ad ncreasing Sales?

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Sales Departments in Advertising Departments

Small Companies in Larger Companies
Advertising Agency
Firm that Assists Companies
in Planning, Preparing,
mplementing and
Evaluating Their
Advertising
Programs.
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Designed to enhance a company¶s

nstitutional
image rather than promote a
Advertising
particular product.
Product Designed to tout the benefits of a

Advertising specific good or service.
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Enhance
corporation¶s identity
nstitutional
Advertising
Advocacy
advertising
Pioneering
Product
Advertising Competitive
Comparative

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Stimulates primary demand for
Pioneering new product or category.
Used in the PLC introductory stage.
nfluence demand for brand in the

Competitive growth phase of the PLC.
Often uses emotional appeal.
Compares two or more competing

Comparative brands¶ product attributes.
Used if growth is sluggish, or if
competition is strong.
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Adaptation of
Global Advertising
Advertising Media Costs

& Availability
Regulation of
Advertising Practices

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Mass communication technique that offers short-
short-
term incentives to encourage purchase or sales of
a goods or service.
1) Consumer Promotion, 2)Trade Promotion and
3)Sales force Promotion ( Three Target groups)
Rapid growth in the industry has been achieved
because:
å Product managers are facing more pressure to
increase their current sales,
å Companies face more competition,
å Advertising efficiency has declined,
å Consumers have become more deal oriented.

| !
Short-Term ncentives to Encourage Purchase
or Sales of a Product or Service.
Consumer- Consumer-
Promotion Promotion Tools
Objectives
Entice Consumers to
Samples Advertising
Try a Èew Product Specialties
Lure Customers Away Coupons Patronage
Patronage
From Competitors¶ Products
Rewards
Rewards
Get Consumers to ³Load Up¶ Cash Refunds
on a Mature Product Contests
Hold & Reward Loyal Price Packs
Customers Sweepstakes
Consumer Relationship Premiums Games
Building
Point-of-Purchase
Displays
V
, V
Short-Term ncentives That are Directed to
Retailers and Wholesalers.
Trade-Promotion Trade-Promotion
Objectives Tools
Persuade Retailers or
Wholesalers to Carry a Brand Price-Offs Premiums
Give a Brand Shelf Space Allowances Patronage
Displays
Rewards
Promote a Brand in Buy-Back
Advertising Discounts
Guarantees
Push a Brand to Consumers Push Money
Free Goods
Specialty
Contests Advertising
tems
#, V
Short-Term ncentives That are Directed to
ndustrial Customers.
Business- Business-Promotion
Promotion Tools
Objectives
Generate Business Leads Conventions
Stimulate Purchases Trade Shows
Reward Customers Sales Contests
Motivate Salespeople
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Decide on the Size of the ncentive
Set Conditions for Participation
Determine How to Promote and

Distribute the Promotion Program
Determine the Length of the Program
Evaluate the Program

| %

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s | %

Building good relations with the company¶s various
publics by obtaining favorable publicity, building up
a good ³corporate image´ and handling or heading
off unfavorable rumors, stories and events.
Major functions are:
å Press Relations
å Product Publicity
å Public Affairs
å Lobbying
å Investor Relations
å Development
|/Ö.u%$."!u0
Definition
³Public Relations in the management function
which evaluates public attitudes, identifies the
policies and procedures of an individual or an
organization to with the public Definition cont.
interest, and executes a program of action to earn
public understanding and acceptance.´
American Association of Advertising Agencies
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Executes programs
Evaluates public
to gain public
attitudes
acceptance
dentifies issues of
public concern
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Press Relations
Product Publicity
Corporate Communication
Public Affairs
Lobbying
Employee and nvestor Relations
Crisis Management
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Web Site
Public
Service Èews
Activities
Corporate
dentity
Materials Speeches
Audiovisual Special
Materials Events
Written
Materials
(

@
- ' (

Setting Public Relations Objectives
Choosing the Public Relations Messages

and Vehicles
mplementing the Public Relations Plan
Evaluating Public Relations Results

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Most salespeople are well-
well-educated,
well--trained professionals who work
well
to build and maintain long-
long-term
customer relationships.
The term salesperson covers a wide
range of positions:
taker: Department store clerk
å Order taker:
getter: Creative selling in
å Order getter:
different environments

!
%

ß
Personal selling is a paid, personal form of

promotion.
Involves two-
two-way personal communication
between salespeople and individual customers.
Salespeople:
å Probe customers to learn about problems
å Adjust marketing offers to fit special needs
å Negotiate terms of sales
å Build long-
long-term personal relationships

!
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Conduct business from their

offices via telephone or visits from
perspective buyers.
Includes:
å Technical support people
å Sales assistants
å Telemarketers

#%

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Key talents of salespeople:

å Intrinsic motivation
å Disciplined work style
å Ability to close a sale
å Ability to build relationships with
customers
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Recommendation =
s from current = " $
sales force $
Employment = (!
agencies %
Classified ads

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Fixed amount:
å Salary
Variable amount:
å Commissions or bonuses
Expenses:
å Repays for job-
job-related expenditures
Fringe benefits:
å Vacations, sick leave, pension, etc.

# #

#
#
Directing Salespeople
å Help them identify customers and set
call norms.
å Specify time to be spent prospecting
_

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Motivating Salespeople
å Organizational climate
å Sales quotas
å Positive incentives:
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Generally defined as:
marketing and promotional activities
that:
å seek an association with a sponsored
event

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Goal:
å to misappropriate or capitalize on the goodwill and
popularity of the sponsored event
å intentionally confuse the public into thinking that
the ambush marketer is the official sponsor of the
event

$

$

.

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The result:
å consumers may be confused as to who is the
official sponsor of the event
å ambush marketing may impact negatively on
sponsorship rights
Therefore:
å sponsors seek some guarantee from the
organizer of the event that offenders will be
pursued (in the sponsorship agreement)
ß

Simultaneous promotions (for example:
sample/free product distribution at sponsored
event, billboard advertising or flying blimp
with advertiser¶s mark over venue)
Purchase of sub-
sub-category rights (for example:
broadcast rights purchased from a TV
network from marketers who are not official
sponsors of the event for the duration of the
sponsored event)

Direct marketing consists of direct
connections with carefully targeted
individual consumers to both obtain
an immediate response and cultivate
lasting customer relationships.

!
0

Some firms use direct marketing as a

medium.
For many companies, direct marketing
constitutes a

for doing business.
Some firms employ the direct model
as their
' approach.
Some see this as the new marketing
model of the next millennium.
w
Ö

Benefits to Buyers
Buyers::
å Convenient
å Easy to use
å Private
å Ready access to products and
information
å Immediate and interactive
Ö

Benefits to Sellers
Sellers::
å Powerful tool for building customer
relationships
å Can target small groups or
individuals
å Can tailor offers to individual needs
å Can be timed to reach prospects at
just the right moment
å Gives access to buyers they could
not reach through other channels
å Offers a low-
low-cost, efficient way to
reach markets

An organized collection of comprehensive data
about individual customers or prospects,
including geographic, demographic,
psychographic, and behavioral data.
Databases can be used to identify prospects,
tailor products, and maintain customer
relationships
Database marketing requires substantial
investment in hardware, software, personnel
!!!
ß

Involves sending an offer,
announcement, reminder, or other item
to a person at a particular address.
Accounts for a high proportion of
direct--marketing sales.
direct
Permits high target
target--market selectivity.
Personal and flexible.
Easy to measure results.

With the Internet, more and more
catalogs going electronic.
Print catalogs still the primary
medium.
Harder to attract new customers
with Internet catalogs.

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6

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| | 

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 Concrete, Measurable Communication Tasks

Èoise Èoise Èoise Èoise Èoise Èoise

Step 3. Designing a Message

Step 1. dentifying the Target Audience

Step 2. Determining the Communication Objectives

Step 3. Designing a Message

Attention nterest Desire Action

å Message Format: Design, layout, copy, color,

Two major decisions

 Arbitrary Allocation Method

 Percentage of Sales Method

 Competitive Parity Method

 Return on nvestment Method

å Trade promotions can not favor certain

å Use advertising to promote socially

Message Decisions Media Decisions

nformative Advertising Persuasive Advertising

Plan a Message Strategy

Step 1. Decide on Reach, Frequency,

Step 4. Deciding on Media Timing

The number of target consumers

Audience The ability of an advertising medium

Advertising Program Evaluation

Communication Effects Sales Effects

Sales Departments in Advertising Departments

Designed to enhance a company¶s

Product Designed to tout the benefits of a

 nfluence demand for brand in the

 Compares two or more competing

Advertising Media Costs

& '(( ) $

Stimulate Purchases Trade Shows

Reward Customers Sales Contests

Decide on the Size of the ncentive

Set Conditions for Participation

Determine How to Promote and

Determine the Length of the Program

Evaluate the Program

Setting Public Relations Objectives

Choosing the Public Relations Messages

mplementing the Public Relations Plan

Evaluating Public Relations Results

     

 Personal selling is a paid, personal form of

ã  

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     

+  ,'    

  ,'  !

 ,!    !

 Conduct business from their

 Key talents of salespeople:

4  !%""

4     

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 Some firms use direct marketing as a

You might also like

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Concrete, Measurable Communication Tasks

Arbitrary Allocation Method

Percentage of Sales Method

Competitive Parity Method

Return on nvestment Method

nfluence demand for brand in the

Compares two or more competing

& '(() $

Personal selling is a paid, personal form of

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Conduct business from their

Key talents of salespeople:

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Some firms use direct marketing as a